Contact Us

Author name: Web Desk

Pakistan Stock Exchange Crash: KSE-100 Plunges Over 4,600 Points as Middle East Conflict Sparks Market Panic The Pakistan Stock Exchange Crash dominated financial headlines on Wednesday after the benchmark KSE-100 Index suffered one of its sharpest single-day declines in recent months. Investors rushed to offload shares as rising geopolitical tensions in the Middle East fueled fears of prolonged market uncertainty, sending shockwaves across Pakistan's equity market. The sharp decline reflected growing concerns that an expanding regional conflict could disrupt global energy supplies, increase inflationary pressures, and slow economic recovery. As investors moved away from risky assets, selling intensified across nearly every major sector of the Pakistan Stock Exchange (PSX), wiping out thousands of index points in a single trading session. Pakistan Stock Exchange Crash Triggered by Escalating Middle East Tensions Investor confidence weakened dramatically after global oil prices surged on fears of supply disruptions following renewed military developments in the Middle East. Fresh U.S. military strikes on Iran came after attacks on commercial vessels moving through the Strait of Hormuz, one of the world's most critical oil shipping routes. Market anxiety intensified further after U.S. President Donald Trump announced that the ceasefire agreement with Iran was no longer in effect. Adding to investor concerns, Iran's Islamic Revolutionary Guard Corps claimed responsibility for targeting U.S. military installations in Kuwait and Bahrain, raising fears that the conflict could spread across the region. For emerging markets such as Pakistan, geopolitical uncertainty often leads to capital outflows as investors seek safer investment destinations. The Pakistan Stock Exchange was no exception, experiencing heavy selling pressure throughout the trading session. KSE-100 Records One of Its Steepest Declines The benchmark KSE-100 Index closed at 181,629.36 points, falling 4,626.19 points, or 2.48 percent, from the previous session. Trading remained highly volatile throughout the day as the index moved within a massive range of more than 5,700 points. The market reached an intraday high of 185,215.56 before extending losses to an intraday low of 179,504.34 as panic selling accelerated. Despite the sharp decline, investor participation remained exceptionally strong. Trading volume within the KSE-100 Index reached 571.94 million shares, reflecting intense activity as traders repositioned their portfolios amid heightened uncertainty. Pakistan Stock Exchange Crash Hits Almost Every Sector The market decline was broad-based, with only seven companies in the KSE-100 Index ending the session in positive territory while ninety-three stocks closed lower. Commercial banks emerged as the biggest drag on the benchmark, followed by cement, oil and gas exploration companies, fertilizer producers, and investment companies. These sectors collectively erased thousands of index points, highlighting widespread selling rather than weakness confined to a single industry. Only a handful of sectors managed to resist the broader market decline. Refinery companies provided the strongest support, while synthetic and rayon manufacturers, sugar companies, and leasing firms recorded modest gains that were insufficient to offset the heavy losses elsewhere. Biggest Winners and Losers During the Session Among the day's worst-performing stocks were MEHT, KTML, INIL, HCAR, and ISL, all posting significant percentage declines as investors exited positions across multiple industries. On the positive side, IBFL delivered the strongest gain of the session, followed by PGLC, JDWS, CNERGY, and ATRL. Although these companies attracted selective buying interest, their gains had only a limited impact on the overall market performance. Major heavyweight companies also contributed substantially to the index decline. UBL, FFC, ENGROH, LUCK, and HUBC collectively accounted for a significant portion of the benchmark's losses, underscoring the widespread nature of the sell-off. Heavy Trading Activity Reflects Investor Uncertainty The broader market also experienced significant weakness. The All-Share Index closed lower by 2,557.43 points, ending the session at 109,942.32. Market activity, however, surged considerably. Total traded volume climbed to 1.55 billion shares, compared with 984.85 million shares in the previous session. The value of traded shares also increased by Rs16.73 billion, reaching Rs62.44 billion, indicating that investors remained highly active despite the negative sentiment. Among the most actively traded companies were WTL, CNERGY, KEL, LSECL, PACE, PRL, BOP, FNEL, MLCF, and HIRATNC, reflecting continued interest from both institutional and retail investors even as the market remained under pressure. What the Pakistan Stock Exchange Crash Means for Investors Although Wednesday's sell-off erased significant market gains, the broader performance of the Pakistan Stock Exchange remains positive over longer timeframes. The KSE-100 Index has still gained 1,328 points, or 0.74 percent, during the current fiscal year and remains 7,575 points, or 4.35 percent, higher since the beginning of the calendar year. Going forward, investor sentiment is likely to remain closely tied to developments in the Middle East. Any further escalation in geopolitical tensions, continued volatility in oil prices, or signs of prolonged regional conflict could keep pressure on the Pakistan Stock Exchange. Conversely, diplomatic progress or easing global tensions could restore investor confidence and support a market recovery in the coming sessions. Focus Keyword: Pakistan Stock Exchange Crash Meta Description: Pakistan Stock Exchange Crash sends the KSE-100 Index down more than 4,600 points as escalating Middle East tensions trigger panic selling. Read the latest PSX market analysis, sector performance, top movers, and what investors should expect next. Tags/Keywords: Pakistan Stock Exchange Crash, PSX Today, KSE-100 Index Today, Pakistan Stock Market News, KSE-100 Falls, Pakistan Share Market Update, PSX Market Analysis, Pakistan Economy News, Stock Market Pakistan, Middle East Conflict Impact, Oil Prices News, Investor Sentiment Pakistan, PSX Latest News, KSE-100 Trading, Pakistan Business News
Business

Pakistan Stock Exchange Crash: KSE-100 Plunges Over 4,600 Points as Middle East Conflict Sparks Market Panic

/

Search and Rescue Operation Recovers B737 Debris After 12-Hour Hunt in Deep Sea Pakistan Navy (PN) and the Pakistan Maritime Security Agency (PMSA) have located the wreckage of a K2 Airways Cargo plane crash site in the Arabian Sea. The discovery came after an exhaustive 12-hour search and rescue operation conducted across deep sea waters. The aircraft, a Boeing 737 cargo jet, was declared missing the previous night, triggering an immediate emergency response from maritime and aviation authorities. The wreckage was recovered approximately 53 nautical miles south of Ormara, a coastal town in Balochistan. The find confirmed the worst fears of aviation officials and the families of the crew members on board. K2 Airways Cargo Flight Goes Missing Overnight The K2 Airways Cargo B737 disappeared from radar during the night, prompting authorities to launch an urgent search operation. Details of the flight’s route and the number of crew members on board were not immediately disclosed in the initial statement. However, the aircraft’s sudden disappearance triggered alarm across Pakistan’s aviation and maritime agencies, who mobilised resources without delay. The Pakistan Navy and PMSA took charge of the search operation as the last known trajectory of the aircraft pointed towards the Arabian Sea. Both agencies coordinated closely to deploy a range of assets across a vast stretch of open water. 12-Hour Search Operation Spans Deep Sea Waters The search and rescue operation lasted 12 gruelling hours. PN and PMSA deployed multiple airborne and sea-based assets to comb through the deep sea region south of Ormara. Aircraft conducted aerial sweeps over a wide search area while naval vessels scoured the waters below. The operation faced significant challenges due to the depth of the sea in the search zone and the vast area that needed to be covered. Despite these difficulties, search teams pressed on through the night and into the following day without interruption. Wreckage Found 53 Nautical Miles South of Ormara After 12 hours of continuous operations, PN and PMSA successfully located and identified the wreckage of the K2 Airways Cargo plane crash. The debris was found 53 nautical miles south of Ormara in the Arabian Sea. The recovery of the wreckage confirmed that the aircraft had gone down in the sea. Aviation investigators and rescue teams will now work to piece together what caused the Boeing 737 to crash. The discovery of the crash site marks a critical milestone in the investigation and recovery operation. Search Continues for Missing Crew Members Despite locating the K2 Airways Cargo plane crash site, the fate of the crew members remains unknown. Rescue teams are actively searching the area for any survivors or remains of those on board. Both PN and PMSA have kept all assets deployed in the area as the search for missing crew members continues. The operation remains ongoing and authorities have pledged to provide further updates as the situation develops. The recovery of crew members from deep sea conditions presents a formidable challenge for rescue teams. However, authorities have indicated that all available resources remain committed to the mission. Aviation and Maritime Agencies Coordinate Response The swift and coordinated response by Pakistan Navy and PMSA drew recognition from officials. The two agencies worked in close coordination throughout the 12-hour operation, pooling their airborne and sea-based assets to maximise the coverage of the search area. The Pakistan Navy operates a fleet of maritime patrol aircraft and naval vessels well-suited to deep-sea search operations. PMSA similarly contributed specialised assets to the effort. Their combined resources proved decisive in locating the K2 Airways Cargo plane crash site within 12 hours of the aircraft being declared missing. Further Updates Expected as Operation Progresses Authorities have confirmed that the search and rescue operation is still underway. Further details are expected to be released as the operation progresses and more information becomes available. The K2 Airways Cargo plane crash is a major aviation tragedy and will likely prompt a full investigation by Pakistan’s Civil Aviation Authority (CAA). Questions about the aircraft’s airworthiness, flight path, and communication logs will form a central part of any inquiry. Pakistan’s aviation sector and the public are closely watching developments as rescue teams continue their efforts in the Arabian Sea.

NEPRA Approves New Performance Benchmarks for K-Electric's BQPS-III Plant
Pakistan

NEPRA Approves New Performance Benchmarks for K-Electric’s BQPS-III Plant

/

The National Electric Power Regulatory Authority (NEPRA) has approved revised performance benchmarks for K-Electric’s 900-megawatt (MW) Bin Qasim Power Station-III (BQPS-III) following independent testing of both generating units, aligning the plant’s operational standards with its actual field performance. The revised benchmarks, approved through an order issued on July 6, 2026, establish updated net generation capacity and net heat rate standards that will be used to assess the plant’s efficiency and determine future electricity tariffs. According to the regulator, the revised benchmarks are based on findings from independent engineers who evaluated the plant under standardized operating conditions. Independent Testing Conducted The decision follows comprehensive performance tests carried out on the 900MW combined-cycle power plant, which comprises two 450MW generating units. The facility primarily operates on Re-gasified Liquefied Natural Gas (RLNG), with high-speed diesel (HSD) serving as a backup fuel during emergencies or interruptions in gas supply. NEPRA said the tests were conducted after the plant had accumulated several years of commercial operating hours to assess its actual efficiency under normal operating conditions. The regulator noted that updating the benchmarks is necessary to ensure tariff calculations reflect the plant’s current operating performance rather than its original engineering specifications. Performance Degradation Considered According to NEPRA, the plant has experienced natural performance degradation over time compared with the original engineering, procurement, and construction (EPC) guarantees provided during commissioning. Independent engineers informed the regulator that gradual efficiency losses are common in combined-cycle gas turbine power plants as equipment ages. The authority accepted this assessment and revised the operational benchmarks accordingly to better represent the plant’s current performance. Operational Factors Affect Efficiency NEPRA also noted that multiple operational and environmental factors influence the efficiency of modern power plants. These include ambient weather conditions, fuel quality, grid stability, and operational practices such as frequent shutdowns and restarts. The regulator further observed that variations in RLNG quality can directly affect electricity generation capacity and fuel efficiency. These considerations were incorporated while determining the revised benchmarks. Revised RLNG Performance Benchmarks For RLNG-based operations, NEPRA approved a net generation capacity of 453.40MW for Unit-1, exceeding K-Electric’s requested benchmark of 449.808MW. The regulator also approved a net heat rate of 6,384.46 British thermal units (Btu) per kilowatt-hour (kWh) for Unit-1, marginally lower than the company’s proposed 6,386.92 Btu/kWh, indicating slightly better fuel efficiency. For Unit-2, NEPRA approved a net capacity of 454.92MW, also higher than the requested 449.808MW. The approved net heat rate for Unit-2 remained 6,388.13 Btu/kWh, matching the company’s proposed benchmark. These figures will serve as the official performance standards for RLNG operations at the power station. Benchmarks Approved for Diesel Operations NEPRA also finalized revised benchmarks for operations using high-speed diesel (HSD), which is utilized as an alternative fuel. For Unit-1, the regulator approved a net generation capacity of 359MW, compared with K-Electric’s requested 357.479MW. The net heat rate was set at 6,661.85 Btu/kWh, improving upon the company’s proposed 6,738.56 Btu/kWh. For Unit-2, NEPRA approved the requested net capacity of 357.479MW. However, it reduced the approved net heat rate to 6,681.86 Btu/kWh, compared with K-Electric’s proposed 6,739.63 Btu/kWh, reflecting improved expected fuel efficiency during diesel operations. Updated Degradation Factors Approved As part of the order, NEPRA also approved revised degradation factors to account for the gradual decline in plant performance over time. The regulator set the degradation factor at 1.000 for zero operating hours. After 1,790 operating hours, the approved degradation factor was 1.00685 for net capacity and 0.9961 for net heat rate. These values will be used in future assessments of the plant’s performance and corresponding tariff calculations. Importance of BQPS-III The Bin Qasim Power Station-III is one of K-Electric’s most significant generation assets. The 900MW combined-cycle facility was developed to improve electricity generation efficiency while reducing dependence on expensive furnace oil and other high-cost fuels. Operating primarily on RLNG enables the plant to lower fuel costs, improve efficiency, and reduce emissions compared with older thermal power stations. The facility also plays a vital role in supplying electricity to Karachi, Pakistan’s largest commercial and industrial center. Impact on Future Tariffs The revised performance benchmarks are expected to play an important role in future tariff determinations for K-Electric. These benchmarks are used by NEPRA to calculate fuel costs, operational efficiency, and allowable revenues under the utility’s tariff framework. By updating the benchmarks based on independent technical evaluations, the regulator aims to ensure tariff calculations accurately reflect the plant’s actual operating performance rather than theoretical design specifications.

Citi Pharma Board Approves REIT Plan for Lahore Properties
Pakistan

Citi Pharma Board Approves REIT Plan for Lahore Properties

/

Citi Pharma Limited has approved a major corporate restructuring plan that proposes transferring two Lahore properties into a wholly owned subsidiary as part of a planned Real Estate Investment Trust (REIT) structure. The move aims to separate the company’s real estate assets from its core pharmaceutical business, subject to shareholder, court, and regulatory approvals. The Board of Directors of Citi Pharma Limited (PSX: CPHL) has approved a major corporate restructuring initiative by recommending a Citi Pharma Demerger Plan, paving the way for the transfer of key real estate assets into a wholly owned subsidiary as part of a proposed Real Estate Investment Trust (REIT) structure. The decision was taken during the board meeting held on July 8, 2026, according to a notification submitted to the Pakistan Stock Exchange (PSX). The proposed restructuring marks an important step in Citi Pharma’s long-term corporate strategy to separate selected real estate assets from its core pharmaceutical operations while creating a dedicated investment vehicle for property-related holdings. Board Approves Scheme of Arrangement Under the approved proposal, the board recommended a Scheme of Arrangement and Demerger that will transfer ownership of two immovable properties from Citi Pharma Limited to Citi Core Holdings (Private) Limited, a wholly owned Special Purpose Vehicle (SPV). The subsidiary has been incorporated specifically to facilitate the company’s proposed REIT framework, which is intended to hold and manage the transferred real estate assets. The company stated that the transfer forms part of a broader restructuring strategy aimed at enhancing the management and utilization of its property portfolio while supporting future investment opportunities. If approved, the restructuring will allow the pharmaceutical business and real estate assets to operate under separate structures, potentially improving operational efficiency and creating additional value for shareholders. Two Lahore Properties Included in the Transfer The Citi Pharma Demerger Plan covers two significant properties located in Lahore. The first property is a 4.1-kanal commercial site situated at 71-E, Hali Road, Gulberg III, one of Lahore’s established commercial districts. The second asset is a much larger 27.15-kanal property located at Mouza Haloki, near Khayaban-e-Zafar in Tehsil Model Town Extension, Lahore. These two properties will be transferred and vested in Citi Core Holdings (Private) Limited once all required approvals are obtained and the Scheme of Arrangement becomes effective. The transfer represents the initial phase of the company’s proposed REIT-based structure, under which real estate assets may be managed separately from the company’s pharmaceutical business. Share Swap to Serve as Consideration As consideration for the transfer of these assets, Citi Core Holdings (Private) Limited will issue 331,720,000 ordinary shares, each having a face value of Rs10, to Citi Pharma Limited. The number of shares has been determined in accordance with the Auditor’s Swap Ratio Certificate, which was prepared by independent chartered accountants. The swap ratio provides the basis for determining the value exchanged between the two entities and is intended to ensure that the restructuring is carried out on fair and transparent terms. Following the issuance of these shares, Citi Pharma Limited will continue to own the subsidiary, while the transferred real estate assets will be held under Citi Core Holdings (Private) Limited. Shareholders to Decide on the Proposal Although the board has approved and recommended the Citi Pharma Demerger Plan, the proposal has not yet become effective. The Scheme of Arrangement has been placed before the company’s shareholders following directions issued by the Lahore High Court. Shareholders are scheduled to consider the proposal during the Extraordinary General Meeting (EGM) held on July 8, 2026. Their approval is a mandatory requirement before the restructuring can proceed further. The company noted that shareholder support will play a crucial role in determining whether the proposed demerger moves to the next stage of implementation. Court Approval Still Required In addition to shareholder approval, the restructuring remains subject to formal sanction by the Lahore High Court. The court’s approval is a legal requirement under the applicable corporate laws governing schemes of arrangement and demergers in Pakistan. Only after the court grants its sanction can the company proceed with completing the asset transfer and implementing the restructuring. The company also emphasized that the transaction remains subject to compliance with all applicable legal, corporate, and regulatory requirements before it becomes fully effective. These approvals are intended to ensure that the interests of shareholders, creditors, and other stakeholders are adequately protected throughout the restructuring process. REIT Structure Could Unlock Long-Term Value The proposed REIT structure reflects a growing trend among companies seeking to optimize the value of their real estate holdings through dedicated investment vehicles. By transferring selected properties into a wholly owned SPV, Citi Pharma aims to establish a clearer separation between its operating pharmaceutical business and its property assets. Such restructuring can improve transparency, simplify asset management, and provide greater flexibility for future financing or investment opportunities related to real estate. Market participants often view these corporate restructuring initiatives as a way to unlock hidden asset value while allowing management to focus on its primary business operations. However, the ultimate benefits of the Citi Pharma Demerger Plan will depend on successful completion of the legal process, shareholder support, regulatory compliance, and the future development of the proposed REIT structure. Notification Submitted to PSX Citi Pharma disclosed the board’s decision through an official notification submitted to the Pakistan Stock Exchange. The filing informed investors that implementation of the Scheme of Arrangement will only proceed after obtaining all necessary approvals from shareholders, the Lahore High Court, and the relevant regulatory authorities. Until those approvals are secured, the proposed demerger and transfer of assets will remain subject to the completion of the prescribed legal process. The development represents an important corporate milestone for Citi Pharma as it seeks to strengthen its organizational structure and establish a separate platform for managing its real estate assets while continuing to focus on its pharmaceutical business.

Karachi Ranks Among World's Least Liveable Cities in EIU Global Liveability Index 2026
Uncategorized

Karachi Ranks Among World’s Least Liveable Cities in EIU Global Liveability Index 2026

/

Karachi has been ranked among the world’s least liveable cities in the Economist Intelligence Unit (EIU) Global Liveability Index 2026, placing 170th out of 173 cities. The report highlights persistent challenges in stability, infrastructure, and public services, while education remained the city’s strongest-performing category. KARACHI: Karachi has been ranked among the world’s least liveable cities, placing 170th out of 173 cities in the Economist Intelligence Unit (EIU) Global Liveability Index 2026. The latest rankings place Pakistan’s largest city ahead of only Dhaka, Tripoli, and Damascus, while cities affected by recent conflicts, including Tehran (164th) and Kyiv (166th), ranked slightly higher. The annual Global Liveability Index evaluates living conditions in 173 cities worldwide and is widely regarded as a key benchmark for assessing urban quality of life. The rankings measure five major categories: stability, healthcare, culture and environment, education, and infrastructure. Karachi Scores 43 Out of 100 Karachi received an overall score of 43 out of 100, equal to Algiers, reflecting continued challenges across several key indicators. The city’s category scores were: Category Score Stability 20 Healthcare 54 Culture and Environment 36 Education 75 Infrastructure 52 Education remained Karachi’s strongest-performing category, while stability received the lowest score. According to the EIU, large cities often receive lower scores because of persistent issues such as traffic congestion, crime, pressure on public services, and infrastructure challenges. Middle East Cities Also Decline The report noted that several cities in the Middle East experienced declines in this year’s rankings following the recent US-Iran conflict. Muscat recorded the sharpest fall, dropping 14 places to 123rd after a series of Iranian drone strikes. Other cities also moved down the rankings: The EIU said regional instability affected the liveability scores of several Gulf cities despite their strong infrastructure and healthcare systems. Copenhagen Retains Top Position At the top of the Global Liveability Index 2026, Copenhagen retained its position as the world’s most liveable city. Among the top 10, Vancouver ranked ninth and was the only North American city to make the list, while Tokyo ranked 10th as the only megacity in the top 10. The EIU’s findings highlight the continuing challenges facing Karachi in areas such as public safety, infrastructure, and urban management. At the same time, the relatively stronger education score indicates progress in one of the city’s key social sectors, even as broader improvements remain necessary to enhance overall quality of life.

Pakistan to Launch Offshore Oil and Gas Exploration After Nearly Two Decades
Pakistan

Pakistan to Launch Offshore Oil and Gas Exploration After Nearly Two Decades

/

Pakistan is set to begin offshore oil and gas exploration later this year for the first time in nearly two decades, marking a significant step toward strengthening energy security and reducing dependence on imported fuels. The government is also advancing refinery upgrades, strategic petroleum reserves, and broader petroleum sector reforms to enhance long-term energy resilience. ISLAMABAD: Pakistan is set to launch offshore oil and gas exploration later this year for the first time in nearly two decades as part of a broader strategy to strengthen the country’s energy security and reduce its dependence on imported fuels. Petroleum Minister Ali Pervaiz Malik announced the plan while briefing the National Assembly Standing Committee on Petroleum on Tuesday. He said the offshore exploration initiative would mark a significant step toward unlocking Pakistan’s untapped offshore hydrocarbon potential. The minister said the government is also working to establish strategic petroleum reserves to improve the country’s energy resilience during global supply disruptions. Two firms are currently conducting feasibility studies for the proposed reserves. Refinery Upgrade Policy Nearing Approval Ali Pervaiz Malik told the committee that the long-awaited refinery upgrade policy has been submitted to the federal cabinet and is expected to receive approval soon. He said the government is targeting clearance from the Economic Coordination Committee (ECC) on July 15, after which the policy will immediately move into implementation. The policy will enable domestic refineries to modernize their facilities and begin producing Euro-V standard fuels, which are cleaner and more environmentally friendly than the fuels currently produced in Pakistan. The minister reiterated that the government would not transfer the cost of refinery modernization to consumers. He said Prime Minister Shehbaz Sharif has decided against imposing any additional financial burden on petroleum users, ensuring that refinery upgrades will not result in higher fuel prices for consumers. Fuel Supplies Remained Stable During Regional Crisis Providing an update on the petroleum market, Ali Pervaiz Malik said Pakistan successfully maintained uninterrupted fuel supplies during the recent regional conflict despite limited domestic storage capacity. He said fertilizer plants and power stations continued operating without disruption as the government effectively managed petroleum inventories throughout the crisis. Although international crude oil prices have now fallen below pre-conflict levels, the minister noted that petrol and diesel prices remain relatively high because freight charges, insurance costs, and import premiums have yet to normalize. Pakistan imports around 70% of its petrol requirements and nearly one-third of its diesel demand, making domestic fuel prices highly vulnerable to fluctuations in international energy markets. Govt Pursuing Wider Petroleum Sector Reforms The minister said the government is moving ahead with broader reforms aimed at creating a more transparent and competitive petroleum market. These reforms include the gradual deregulation of fuel pricing, digitalization of the petroleum supply chain, and consideration of publishing daily Platts benchmark prices to improve transparency and help consumers better understand changes in domestic fuel prices. He added that the petroleum levy on petrol has exceeded Rs80 per litre, in line with commitments made under Pakistan’s agreement with the International Monetary Fund (IMF). Ali Pervaiz Malik also expressed confidence that the energy sector’s circular debt would not increase by the end of the current fiscal year as discussions with the IMF continue on measures to improve the sector’s financial sustainability. Committee Reviews CSR Spending During the meeting, members of the National Assembly Standing Committee on Petroleum also reviewed the utilization of Corporate Social Responsibility (CSR) funds by petroleum companies. Lawmakers raised concerns over delays in the use of CSR funds in Sindh and Balochistan and sought details of expenditures made under the program in Khyber Pakhtunkhwa. The committee emphasized the need for greater transparency and timely implementation of community development projects funded through CSR allocations, particularly in areas hosting oil and gas operations.

Govt Plans to Deregulate Pakistan's Petroleum Market, Digitalize Fuel Supply Chain
Editor pick

Govt Plans to Deregulate Pakistan’s Petroleum Market, Digitalize Fuel Supply Chain

/

Pakistan is preparing to gradually deregulate its petroleum market by reducing government involvement in fuel pricing while introducing a more transparent, market-based system. Alongside deregulation, the government plans to digitalize the petroleum supply chain to improve transparency, operational efficiency, and oversight, as Pakistan continues to navigate global energy market volatility. ISLAMABAD: Pakistan is preparing to reform its petroleum sector by gradually reducing government control over fuel pricing and introducing a more transparent, market-driven system, Petroleum Minister Ali Pervaiz Malik said on Tuesday. While briefing the National Assembly Standing Committee on Petroleum, the minister outlined the government’s roadmap to deregulate the petroleum market, improve transparency, and modernize the country’s fuel supply chain through digitalization. He said the government aims to reduce its direct role in determining petrol and diesel prices while continuing to monitor the supply chain to ensure uninterrupted fuel availability across the country. “The objective is to create a competitive and transparent petroleum market that reflects international price trends while ensuring a reliable supply of petroleum products,” the minister told the committee. Digital Fuel Supply Chain to Improve Transparency As part of the planned reforms, the government is digitalizing Pakistan’s petroleum supply chain to strengthen oversight, improve operational efficiency, and reduce irregularities. Ali Pervaiz Malik also revealed that the government is considering publishing daily Platts benchmark prices, allowing consumers and industry stakeholders to track international fuel prices that influence domestic petroleum rates. The move is expected to provide greater transparency in the pricing mechanism and help explain fluctuations in local fuel prices. Heavy Reliance on Imported Fuel The minister said Pakistan remains highly vulnerable to global oil price movements because of its dependence on imported petroleum products. According to the minister, the country imports around 70% of its petrol requirements and approximately 33% of its diesel consumption, making domestic fuel prices sensitive to changes in international crude oil and refined fuel markets. He said any increase in global oil prices, freight charges, insurance costs, or shipping premiums directly affects Pakistan’s import bill and retail fuel prices. Regional Conflict Increased Import Costs Recalling the recent regional conflict in the Middle East, Ali Pervaiz Malik said Pakistan successfully maintained uninterrupted fuel supplies despite severe disruptions in international markets and limited domestic storage capacity. Before the conflict, international crude oil traded at around $71 per barrel, while diesel prices were close to $78 per barrel. However, the crisis caused freight charges, insurance premiums, and transportation costs to surge. As a result, gasoline prices climbed to between $180 and $190 per tonne, while diesel became scarce in international markets. Although global crude oil prices have since fallen below pre-conflict levels, the minister said domestic petrol and diesel prices remain relatively high because import-related costs have not yet returned to previous levels. Govt Ensured Uninterrupted Fuel Supplies Ali Pervaiz Malik said the government successfully managed fuel supplies throughout the crisis, ensuring fertilizer plants, power stations, and other critical industries continued operating without disruption. He added that only limited restrictions were imposed on domestic natural gas consumption during meal hours to manage demand while protecting essential services. Petroleum Levy and IMF Commitments The minister also informed lawmakers that the petroleum levy on petrol has exceeded Rs80 per litre, in line with commitments made under Pakistan’s agreement with the International Monetary Fund (IMF). Responding to concerns about the energy sector’s financial challenges, he said the government remains engaged in discussions with the IMF on resolving the issue of circular debt. Ali Pervaiz Malik expressed confidence that there would be no increase in the energy sector’s circular debt by the end of the current fiscal year, reflecting the government’s efforts to improve financial discipline and strengthen the long-term sustainability of Pakistan’s energy sector.

Federal Debt Hits Rs82 Trillion as Domestic Borrowing Surges
Pakistan

Federal Debt Hits Rs82 Trillion as Domestic Borrowing Surges

/

Pakistan’s federal government debt climbed to Rs82 trillion by the end of May 2026, driven primarily by higher domestic borrowing despite relatively stable external debt growth. The latest figures highlight increasing reliance on short-term domestic financing, rising debt servicing costs, and ongoing fiscal challenges as policymakers seek to balance financing needs with long-term sustainability. ISLAMABAD: Pakistan’s federal government debt rose to Rs82 trillion by the end of May 2026, reflecting continued borrowing to meet fiscal requirements, with domestic debt accounting for the majority of the increase. The latest debt data shows that domestic financing remained the government’s primary source of funding during the period, while external debt growth was moderated by a stronger rupee. Domestic Debt Accounts for Most of the Increase Pakistan’s domestic debt reached Rs58.1 trillion, recording a year-on-year increase of Rs4.7 trillion. Long-term domestic debt rose by Rs2 trillion to Rs47.3 trillion, while short-term domestic debt increased by 32%, climbing from Rs8.1 trillion to Rs10.7 trillion. The sharp rise in short-term borrowing came despite lower interest rates, indicating continued liquidity requirements and increased reliance on short-term financing instruments. Economists generally view higher short-term borrowing as increasing rollover risks because a larger portion of government debt must be refinanced more frequently, leaving public finances more exposed to changes in interest rates. External Debt Growth Remains Relatively Moderate Pakistan’s external debt reached Rs23.8 trillion, increasing by Rs1.3 trillion compared with Rs22.5 trillion a year earlier. However, short-term external debt rose sharply to Rs2.7 trillion, compared with Rs201 billion during the previous year. Officials attributed part of the increase to the reclassification of certain long-term debt obligations. The appreciation of the Pakistani rupee to around Rs278.4 per US dollar helped contain the increase in external debt when measured in local currency. Debt Servicing Costs Continue to Rise According to the available data, the federal government added an average of approximately Rs16 billion to its debt stock each day during the reporting period. Interest payments on total government debt exceeded Rs8 trillion during the fiscal year, placing significant pressure on public finances. High debt servicing costs continue to reduce the fiscal space available for development projects, social spending, and other growth-oriented expenditures. Debt Growth Outpaces Inflation The government’s total debt increased by Rs5.9 trillion over the past 12 months, representing annual growth of 7.8%. This exceeded the average inflation rate of 7%, indicating that the real debt burden continued to rise during the period. The figures suggest fiscal financing requirements remained higher than government revenue, resulting in continued borrowing to bridge the gap. Greater Reliance on Domestic Financing The latest debt composition indicates that most new borrowing came from domestic sources rather than external lenders. While greater reliance on domestic financing reduces immediate foreign exchange pressure, it also increases future domestic debt servicing obligations. Commercial banks and financial institutions continue to hold a significant share of government debt, and sustained government borrowing could limit the availability of credit for the private sector. Fiscal Sustainability Remains a Key Challenge The debt data highlights the importance of prudent debt management, stronger revenue mobilisation, and greater expenditure discipline to improve Pakistan’s long-term fiscal sustainability. The rise in short-term borrowing and changes in external debt composition also underline the need for transparent debt reporting and effective debt management practices. Without sustained fiscal reforms, continued growth in public debt could place additional pressure on future budgets and constrain economic development.

Engro Vopak Partners with S&P Global Energy to Initiate a Feasibility Study to Assess Pakistan’s First Refrigerated LPG Terminal
Uncategorized

Engro Vopak Partners with S&P Global Energy to Initiate a Feasibility Study to Assess Pakistan’s First Refrigerated LPG Terminal

/

Engro Vopak Terminal Limited (EVTL) has initiated a feasibility study for Pakistan’s first refrigerated liquefied petroleum gas (LPG) import terminal. The proposed project aims to strengthen the country’s energy security by expanding LPG import capacity, increasing storage infrastructure, and improving supply chain resilience as domestic natural gas production continues to decline. KARACHI: Engro Vopak Terminal Limited (EVTL) has announced the launch of a feasibility study for Pakistan’s first refrigerated liquefied petroleum gas (LPG) import terminal, marking a significant milestone in the country’s efforts to modernize its energy infrastructure and strengthen long-term energy security. The study will assess the technical and commercial feasibility of developing a refrigerated LPG import and storage facility capable of enhancing Pakistan’s access to international LPG markets while expanding national storage capacity. The initiative comes as Pakistan faces rising demand for cleaner fuels amid declining domestic natural gas production. EVTL Partners with S&P Global Energy To conduct the assessment, Engro Vopak Terminal Limited has partnered with S&P Global Energy, a leading global provider of energy market intelligence and advisory services. According to EVTL, the feasibility study will evaluate the technical, commercial, and operational requirements for developing Pakistan’s first refrigerated LPG import terminal. The assessment will examine: If found viable, the project could significantly improve Pakistan’s ability to meet growing domestic LPG demand. Pakistan’s First Refrigerated LPG Import Terminal The proposed facility would be the first refrigerated LPG import and storage terminal in Pakistan. Unlike conventional pressurized LPG storage systems, refrigerated terminals store liquefied petroleum gas at extremely low temperatures, enabling significantly larger storage volumes while reducing transportation and handling costs. According to EVTL, the project aims to: The company believes the investment could reduce supply disruptions while ensuring more reliable LPG availability across the country. Rising LPG Demand Drives Infrastructure Expansion Pakistan’s dependence on LPG has steadily increased as indigenous natural gas reserves continue to decline. Growing consumption by households, industries, commercial users, and the transport sector has placed increasing pressure on existing LPG import and storage infrastructure. According to EVTL, market assessments indicate Pakistan could face a widening supply gap in the coming years unless additional import capacity is developed. Industry experts also believe larger storage facilities would help stabilize supplies during seasonal demand fluctuations and reduce the impact of international price volatility. Project Follows $200 Million Port Qasim Expansion Plan The feasibility study follows the renewal of EVTL’s Implementation Agreement with the Port Qasim Authority (PQA) in June 2026. Under the renewed agreement, the company plans to invest more than $200 million to expand terminal operations and strengthen Pakistan’s bulk liquid storage infrastructure. The proposed refrigerated LPG terminal forms part of EVTL’s broader long-term expansion strategy aimed at supporting Pakistan’s evolving energy requirements. CEO Highlights Importance of Energy Security Commenting on the initiative, Syed Ammar Shah, Chief Executive Officer of Engro Vopak Terminal Limited and Engro Elengy Terminal Limited, said Pakistan’s changing energy landscape requires stronger LPG supply chains and improved access to global energy markets. He noted that expanding import infrastructure will become increasingly important as domestic energy demand continues to grow. According to Shah, the partnership combines Royal Vopak’s international expertise in bulk liquid storage with Engro’s engineering capabilities and local market knowledge. He added that many developed economies already operate refrigerated LPG terminals because of their efficiency, scalability, and ability to handle larger cargo volumes, making the feasibility study an important opportunity for Pakistan to evaluate global best practices. Modern LPG Infrastructure Could Strengthen Energy Security The development of refrigerated LPG storage infrastructure could transform Pakistan’s energy logistics by enabling larger shipments, lowering storage costs, and reducing dependence on smaller, more frequent imports. Expanded storage capacity would also create strategic reserves capable of cushioning the country against temporary supply disruptions caused by international market volatility or shipping delays. The project aligns with Pakistan’s broader strategy of modernizing energy infrastructure, diversifying fuel sources, and improving long-term energy resilience. About Engro Vopak Terminal Limited Engro Vopak Terminal Limited is a joint venture between Engro Corporation and Royal Vopak of the Netherlands, the world’s largest independent bulk liquid storage and handling company. Established in 1997, EVTL operates Pakistan’s only integrated bulk liquid chemical and LPG terminal at Port Qasim, providing storage and handling services for chemicals, petroleum products, and liquefied petroleum gas. If the refrigerated LPG terminal is found to be commercially and technically viable, it could become one of Pakistan’s most significant energy infrastructure investments, strengthening LPG supply chains, improving energy security, and supporting sustainable economic growth.

Pakistan Government Borrowing Rises to Rs2.97 Trillion in FY27 After Rs1.05 Trillion Weekly Increase
Editor pick

Pakistan Government Borrowing Rises to Rs2.97 Trillion in FY27 After Rs1.05 Trillion Weekly Increase

/

Pakistan’s government recorded net borrowing of Rs1.05 trillion during the week ended June 26, 2026, taking total net borrowing in FY2026-27 to Rs2.97 trillion, according to the latest data released by the State Bank of Pakistan (SBP). The increase was largely driven by borrowing for budgetary support, while the government continued reducing its reliance on direct financing from the central bank. KARACHI: The Government of Pakistan added Rs1.05 trillion to its domestic debt during the week ended June 26, 2026, pushing total net borrowing for FY2026-27 to Rs2.97 trillion, according to the latest weekly estimates published by the State Bank of Pakistan (SBP). The data highlights the government’s continued dependence on domestic financing to meet fiscal requirements, with budgetary support accounting for the overwhelming share of fresh borrowing. Budgetary Support Accounts for Most of the Weekly Borrowing According to the SBP, government borrowing is classified into three categories: budgetary support, commodity operations, and other purposes. During the reporting week, borrowing was distributed as follows: Category Weekly Borrowing Budgetary Support Rs1.048 trillion Commodity Operations Rs599 million Others Rs5.11 billion Total Net Borrowing Rs1.05 trillion The sharp rise in budgetary borrowing reflects the government’s financing needs at the beginning of the new fiscal year as it manages expenditures and implements budget commitments. Cumulative FY27 Borrowing Nears Rs3 Trillion Following the latest increase, cumulative borrowing for budgetary support has reached approximately Rs3.02 trillion during FY2026-27. Meanwhile, commodity operations recorded a net retirement of Rs51.4 billion, indicating that repayments exceeded fresh borrowing. Borrowing under the other category stood at Rs1.53 billion. The cumulative borrowing position is as follows: Category Cumulative Position Budgetary Support Rs3.02 trillion Commodity Operations Rs51.4 billion retired Others Rs1.53 billion borrowed Net Government Borrowing Rs2.97 trillion The figures show that budgetary support continues to account for nearly all of the government’s financing requirements. Government Continues to Reduce Borrowing from SBP The SBP data indicates that the government has continued its policy of reducing direct borrowing from the central bank. During FY2026-27, the government retired a net Rs3.08 trillion owed to the State Bank of Pakistan. The repayments included: The continued retirement of central bank debt aligns with broader fiscal and monetary reforms aimed at limiting direct government borrowing from the SBP. Scheduled Banks Provide More Than Rs6 Trillion While reducing liabilities to the central bank, the government significantly increased financing through scheduled commercial banks. According to the latest SBP estimates, the government has secured Rs6.10 trillion in net financing from commercial banks during FY2026-27. The Federal Government accounted for the majority of the borrowing, raising approximately Rs6.31 trillion from scheduled banks. In contrast, provincial governments recorded a net retirement of Rs207.75 billion, reducing their outstanding borrowing from commercial banks. The trend reflects the government’s strategy of relying more heavily on market-based financing through the domestic banking sector. Domestic Borrowing Remains Central to Fiscal Management Domestic borrowing continues to play a vital role in financing Pakistan’s fiscal operations, particularly during the early stages of the fiscal year when expenditure requirements are typically elevated. Budgetary support remains the largest component of government borrowing, helping finance development projects, operational spending, debt servicing, and other budgeted obligations. The latest SBP data also indicates continued adherence to the government’s policy of reducing direct central bank financing while increasing reliance on commercial banks. Economists generally view this approach as supportive of monetary discipline, although sustained borrowing from scheduled banks could influence liquidity conditions and private sector credit availability in the months ahead. As FY2026-27 progresses, government borrowing trends will remain closely monitored by investors, policymakers, and financial markets for their implications on public debt management, fiscal sustainability, and overall macroeconomic stability.

PSX Reconstitutes JS Momentum Factor Index, Adds Eight Companies in Latest Review
Pakistan

PSX Reconstitutes JS Momentum Factor Index, Adds Eight Companies in Latest Review

/

The Pakistan Stock Exchange (PSX) has completed the latest reconstitution of the JS Momentum Factor Index (JSMFI), adding eight new companies and removing eight existing constituents as part of its periodic review. The revised index composition became effective on July 7, 2026, reflecting companies with the strongest momentum characteristics in Pakistan’s equity market. KARACHI: The Pakistan Stock Exchange (PSX) has announced the latest reconstitution of the JS Momentum Factor Index (JSMFI), introducing eight new companies while removing eight existing constituents following its periodic index review. According to the exchange, the revised composition became effective on Tuesday, July 7, 2026, in line with the index methodology and review schedule. Eight Companies Added to the PSX JS Momentum Factor Index Following the latest review, the following companies have been included in the JS Momentum Factor Index: According to the PSX, these companies qualified for inclusion based on the momentum selection criteria outlined in the index methodology. The updated index represents a broad range of sectors, including energy, automobiles, cement, textiles, aviation, capital markets, and food processing. Eight Companies Removed from the Index As part of the rebalancing exercise, the following companies have been excluded from the JS Momentum Factor Index: The PSX noted that companies may enter or exit the index depending on their momentum performance and compliance with the index’s established methodology. Maple Leaf Cement and DG Khan Cement Receive Highest Weight Under the revised index composition, Maple Leaf Cement Factory Limited (MLCF) and D.G. Khan Cement Company Limited (DGKC) have been assigned the highest weighting of 20% each. The remaining constituent weightings are: Company Symbol Weight Maple Leaf Cement Factory Limited MLCF 20.00% D.G. Khan Cement Company Limited DGKC 20.00% Sui Southern Gas Company Limited SSGC 13.75% Sui Northern Gas Pipelines Limited SNGP 12.88% Ghandhara Automobiles Limited GAL 8.00% Thatta Cement Company Limited THCCL 6.54% PIA Holding Company Limited PIAHCLA 5.81% Pakistan Stock Exchange Limited PSX 4.53% Interloop Limited ILP 4.45% The Organic Meat Company Limited TOMCL 4.05% The allocation reflects each company’s relative momentum score under the index’s methodology. JS Momentum Factor Index Tracks High-Momentum Stocks The JS Momentum Factor Index is designed to track listed companies that demonstrate strong price momentum based on predefined screening criteria and index rules. Momentum-based indices are widely used by investors, fund managers, and market participants to identify stocks that have consistently outperformed over a specified period. Through periodic reviews and rebalancing, the index seeks to remain aligned with prevailing market trends by including companies with improving momentum while removing those whose performance has weakened. Periodic Reviews Strengthen Index Representation The Pakistan Stock Exchange conducts regular reviews of its benchmark indices to ensure they accurately reflect changing market conditions and maintain transparency in index construction. The latest reconstitution of the JS Momentum Factor Index reinforces the exchange’s commitment to providing reliable benchmark indices that assist investors and asset managers in evaluating investment opportunities across Pakistan’s equity market. With the revised composition now in effect, the JSMFI will continue to serve as an important benchmark for tracking momentum-driven stocks listed on the Pakistan Stock Exchange.

The Boardroom PK delivers trusted business news, analysis, and insights from Pakistan and beyond, keeping readers informed, inspired, and ahead in the evolving world of business and leadership.

Facebook Instagram X-twitter Linkedin Youtube
News
Categories
Company
  • Privacy Policy
  • Terms of Services
  • Sitemap
  • Contact Us

© 2025 theboardroom. All rights reserved.

Scroll to Top